Overdraft Coverage

WHAT ARE MY OVERDRAFT COVERAGE OPTIONS?

Consider these ways to cover overdrafts:

¹Contact us at (800) 678-8765, emailus@chartway.com, or come by a branch to sign up for these services. ²Subject to credit approval.

WHAT IS OVERDRAFT PROTECTION?

Overdraft Protection services apply to all types of transactions and may help protect your account from being overdrawn by automatically transferring funds to your checking account from another account or line-of-credit you may have at Chartway, for a fee and/or finance charge. Please note that overdraft lines-of-credit are subject to credit approval. We also have mobile, online, and telephone banking services to help you keep track of your balance.

WHAT IS OVERDRAFT PRIVILEGE?

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a $30 fee per item in order to pay a transaction.

Chartway may provide you a specific Overdraft Privilege limit depending on whether you have direct deposit. You will receive a letter approximately sixty (60) days after account opening for consumer accounts, informing you that Overdraft Privilege has been activated on your account. You do not have Overdraft Privilege until you receive this notification.

Even if you have Overdraft Protection, such as a transfer from another account, Overdraft Privilege is still available as secondary coverage if the other protection sources are exhausted.

Please be aware that the Overdraft Privilege amount is not included in your available balance displayed through online banking, mobile banking, telephone banking or Chartway ATMs.

HOW MUCH DOES OVERDRAFT PRIVILEGE COST?

When Overdraft Privilege is used, the Overdraft Privilege Fee of $30 will be imposed for overdrafts created by checks, ACH, point-of-sale, in-person withdrawals, or by other electronic means. If multiple items overdraw your account on the same day, each item will be assessed the $30 fee. This is the same fee that Chartway charges for items returned to the payee due to insufficient funds.

There is no limit to the number of Overdraft Privilege Fees that we will charge your consumer account per day. We will not charge an Overdraft Privilege Fee if your consumer account is overdrawn by $10 or less.

All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of the assessment of a fee. The total negative balance, including all fees and charges, is due and payable upon demand. Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Deposit Account and Disclosure Agreement.

WHAT ELSE DO I NEED TO KNOW?

• This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post credits before debits. Credits post first, then force-paid items from prior day processing (as arrived), wire transfers, teller cash withdrawal, over the counter items (in serial number order), POS/debit card (as arrived), ACH (as arrived), checks (in serial number order), automatic debit transactions and fees; however, holds on funds (described below) and the order in which transactions are posted may impact the total amount of Overdraft Privilege Fees or Non-Sufficient Funds Fees assessed.
• A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts.
• Although under payment system rules, Chartway may be obligated to pay some unauthorized debit card transactions, Chartway will not authorize debit card transactions unless there are sufficient available funds (including overdraft coverage options) to cover the transactions and the amount of any fee(s).
• Giving us your consent on your consumer account to pay everyday debit card overdrafts (Extended Coverage) may result in you incurring Overdraft Privilege Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Privilege Fee. However, this may allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available balance. If you consent to Extended Coverage on your consumer account, it will remain on your account until you otherwise withdraw it.
• Chartway authorizes and pays transactions using the available balance in your account. Chartway may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Overdraft Privilege limit and any available Overdraft Protection. The available balance for everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available Overdraft Protection, but does NOT include the Overdraft Privilege limit. For accounts with Extended Coverage, the Overdraft Privilege limit is included in the available balance for authorizing everyday debit card transactions.
• Chartway will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Privilege Fee may be assessed.
• Except as described in this brochure, Chartway will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).
• We may suspend your debit card if your account is overdrawn more than thirty-two (32) consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive.
• We may also suspend your debit card if we are unable to contact you due to an incorrect mailing address or phone number(s). You must contact us with your correct information to have your debit card reinstated.
• If your debit card is suspended, you will be unable to use your debit card for purchases or to access your account at the ATM, and if you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
• Overdraft Privilege is not a line-of-credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
• Overdraft Privilege may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within thirty-two (32) consecutive calendar days for a minimum of one business day. You must bring your account balance positive for at least one business day to have Overdraft Privilege reinstated.

WHAT IF I WANT CHARTWAY TO PAY EVERYDAY DEBIT CARD OVERDRAFTS (EXTENDED COVERAGE)?

If you want us to authorize and pay overdrafts caused by everyday debit card transactions (Extended Coverage), tell us by using one of the methods below:

• Complete the online consent form at odp.chartway.com
• Log in to Online Banking
• Call us at (800) 678-8765
• Visit one of our convenient branch locations
• Complete the paper consent form and mail it to us at 5700 Cleveland St., Virginia Beach, VA 23462

WHAT IF I DON’T WANT OVERDRAFT PRIVILEGE?

You can request to discontinue the Overdraft Privilege service in its entirety at any time — call (800) 678-8765 or visit one of our convenient branch locations. Without Overdraft Privilege, your insufficient funds items will be returned to the payee and/or declined at the point of purchase, unless you have Overdraft Protection available to cover the item(s). You will be charged the standard Non-Sufficient Funds Fee of $30 for all returned items.

WE BELIEVE THAT GOOD ACCOUNT MANAGEMENT IS THE BEST WAY TO AVOID OVERDRAFTS.

Use our mobile, online, and telephone banking services, along with low balance alerts, to help you keep track of your balance. Call us at (800) 678-8765 to learn more.

WHAT TYPES OF TRANSACTIONS DOES OVERDRAFT PRIVILEGE COVER?

The types of transactions covered by Overdraft Privilege depend on the coverage selected. See the chart below for more information.

If you choose Extended Coverage, all the transaction types listed in Standard Coverage are included, along with everyday debit card transactions. Chartway will not authorize overdrafts for everyday debit card transactions on consumer accounts unless you give us your consent to pay these overdrafts by electing Extended Coverage. The ability to overdraft from an ATM is currently unavailable but we are working to have this feature added soon.

OVERDRAFT PROTECTION AND OVERDRAFT PRIVILEGE SUMMARY

• Overdraft Protection services allow you to link other accounts or lines-of-credit you have with Chartway to your checking account in order to prevent overdrafts and may be less expensive than an overdraft.
• Overdraft Privilege limits of up to $500 or $750 with Direct Deposit are available for eligible Consumer Checking accounts opened at least sixty (60) days in good standing.
• Standard Overdraft Privilege covers checks, online bill payments, ACH transactions, or automatic/pre-authorized debits that you establish (insurance premiums, utility bills, etc.).
• Extended Overdraft Privilege covers everyday debit card transactions on your personal accounts with your prior consent, in addition to those transactions covered by Standard Overdraft Privilege. The ability to overdraft from an ATM is currently unavailable but we are working to have this feature added soon.
• Both Overdraft Protection and Overdraft Privilege may enable you to avoid expensive merchant returned-check charges.
• Both Overdraft Protection and Overdraft Privilege may enable you to avoid having your debit card transactions declined due to insufficient funds.
• You must deposit the full amount of the overdraft within thirty-two (32) consecutive calendar days, including any fees assessed, and maintain a positive balance for at least one business day to continue to receive Overdraft Privilege.
• If your account remains overdrawn for thirty-two (32) consecutive days, the Overdraft Privilege will be removed and your debit card(s) will be suspended.

For additional financial education resources, visit mymoney.gov or our website at chartway.com.

If you have questions about Overdraft Protection or Overdraft Privilege, please call us at (800) 678-8765.